EUR/JPY aiming back towards 124.00 handle

The EUR/JPY pair staged a solid comeback from sub-123.00 level tested on Thursday to move back within striking distance of reclaiming 124.00 handle.

The pair has now advanced over 0.5% and is currently trading near day's peak level at 123.84, managing to hold its strength above 20-day SMA region. The pair, however, remained stuck between 123.00-124.00 short-term trading range.

The broader picture suggests that the pair has not been able to stage a meaningful recovery beyond 124.00 handle from the recent multi-month low level near 121.70 touched during April and early May, pointing to a near-term consolidation phase before the pair decides its next leg of directional move.

On Friday, the pair is benefiting from bid tone momentum gains witnessed in the EUR/USD and USD/JPY pair. Traders would now be closely eyeing 124.00 handle, which if conquered should assist the pair to extend its bullish momentum.

Trading levels to watch

A strong momentum above 124.00 handle (beyond 124.15-20 area) could assist the pair initially towards 125.00 psychological mark before heading towards 125.30-35 horizontal resistance.

On the flip side, inability to clear 124.00 handle would confirm a near-term range-bound trading action, dragging the pair back below 123.50-40 intermediate support towards 123.00 support region (122.85-80 zone).